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Taxpayers Keep Getting Milked, and Milked, and Milked

Tom Schatz, president of Citizens Against Government Waste, recently wrote that “(a) recent U.S. Department of Agriculture (USDA) decision is the latest example of how a Depression-era program is not only woefully out of date, but is also damaging to the industry that it regulates.”

Schatz goes on to say, “Rather than allowing commerce between dairy farmers and dairy manufacturers to flow freely, the milk marketing orders devise and administer a raft of intricate regulations to govern the overall price of milk. The regulations undermine the most basic free market concept of negotiating contractual agreements between buyers and sellers. The milk marketing orders also impose one of the more illogical pricing mechanisms imaginable ─ “differential” pricing, which establishes varying minimum price for milk in different regions of the country, based, in part, on how far the manufacturing plants are from Eau Claire, Wisconsin.”

He concludes by writing “(t)here is no doubt that USDA’s recent politically-calculated maneuvers are damaging to the dairy industry. That is the bad news. The good news is that this case may help to demonstrate that it is time, after 70 years of government price manipulation, to get the government out of the milk business” Kind of like the Spanish-American War telephone tax that we growled about on June 4.